The year 2013 was dominated by product off ensives at all of our divisions. Our innovative vehicles, pioneering technologies and efficient production processes set new standards in automobile manufacturing and strengthened
our position on international markets, thus laying the groundwork for
further growth.

Daimler’s share price gains 52 % over the year. Global stock markets developed very positively in
2013, supported by the expansive monetary policy of the central banks and the easing of the European
sovereign debt crisis. The Board of Management and the Supervisory Board propose an
increased dividend of €2.25 per share (prior year: €2.20). We off er investors and analysts a comprehensive
range of investor relations services. Daimler took advantage of the high level of liquidity
on international capital markets to refi nance its operations at attractive terms.

Our overriding corporate goal is to achieve sustained profitable growth and thus continually increase the value of the Group. We aim to attain the leading position in all of our business segments. To achieve that goal, we have defined four strategic growth areas for the Group. We will implement measures related to those areas in the coming years within the framework of the growth strategies of our divisions. These strategies will be accompanied by efficiency programs to ensure that our growth has a solid financial foundation.

Efficient Operation - Profitable Growth. Daimler is growing faster, on a broader front and in more markets than ever before. This growth is based on extensive product offensives in all our divisions. We are expanding our product range, creating new segments and specifically addressing regionally different customer requirements. And in doing all of this, one thing is crucial: We don’t want to grow at any price, but with sustainable profitability. That’s why the efficiency programs in the divisions are an additional key element of our growth strategy. Find out more in the section Efficiency & Growth of this Annual Report.

The year 2013 was very successful for Daimler overall. We significantly increased our unit sales and revenue, and continuously improved the profitability of our divisions as the year progressed. We thrilled our customers with numerous new products. And we set new standards with pioneering innovations, above all with regard to the safety and environmental compatibility of our vehicles. In the year 2014, we will continue our growth offensive and further enhance the efficiency of our processes.

2013 was another record year for Mercedes-Benz Cars. Unit sales, revenue and production reached all-time highs. As we anticipated at the beginning of 2013, EBIT displayed a clear upward trend as the year progressed. Our most important new model was the S-Class, a pioneer of automotive development that underscores our leadership in the luxury segment. Additional new models in 2013 were the new E-Class and the CLA compact coupe. We also unveiled the new GLA, a compact SUV. Targeted investment in our global production network and sustained improvements in efficiency have put us on track for further profitable growth.

Daimler Trucks. Daimler Trucks continued to forge ahead with its product offensive in 2013. The presentation of the new Mercedes-Benz Arocs and Atego models and of the Mercedes-Benz SLT, Econic and Unimog special trucks enabled Daimler Trucks to complete its Euro VI-compliant product range well before the stricter emissions standards came into effect at the beginning of 2014. The new product from Daimler Trucks North America, the Freightliner Cascadia Evolution, has met with an outstanding market response. The BharatBenz brand’s expanded product lineup is also setting new standards on India’s roads. The new “Asia Business Model,” an excellence initiative of the “Daimler Trucks #1” program, reached a milestone when production of FUSO models commenced in Chennai, India.

In 2013, Mercedes-Benz Vans launched the new Sprinter — the global vehicle in the van segment. With its new safety and assistance systems, the Sprinter sets new standards in its class. Our unit sales increased in 2013 and we achieved double-digit growth rates in China, Latin America and Eastern Europe. Despite sharp market declines in Western European, we were able to improve our earnings. We are continuing our “Vans goes global” growth strategy. By starting production of the Sprinter Classic in Russia and strengthening our activities in China, we have laid the foundations for continued growth.

Numerous new products and the systematic continuation of the “GLOBE 2013” growth and efficiency program contributed to the turnaround at Daimler Buses. Higher unit sales and further efficiency progress led to a significant earnings improvement in financial year 2013. The division thus confirmed its leadership in the core markets of Western Europe and Latin America. During the year under review, the division focused on converting the entire European product range to Euro VI-compliant exhaust-gas technology. Daimler Buses set new standards in the luxury coach segment with the presentation of the new Setra TopClass 500.

At Daimler Financial Services, the number of financed or leased cars and commercial vehicles passed the three-million mark for the first time ever. New business and contract volume reached new record levels. The division also set a new record for brokering automotive insurance policies. At the end of 2013, the car-sharing program car2go had almost 600,000 customers and was the market leader in its segment. Once again, customers and dealers alike gave the Daimler Group’s financial services division very high marks.

Daimler’s divisions generally performed well in an market environment that remained
difficult. We renewed our product range while continuing to increase our efficiency. We were able to improve our market position in many areas.

Daimler’s Board of Management and Supervisory Board are
committed to the principles of good corporate governance.
All of our activities are based on the principles of responsible,
transparent and sustainable management.

The Consolidated Financial Statements presented as follows have been prepared in
accordance with the International Financial Reporting Standards (IFRS). They also
comply with additional requirements set forth in Section 315a (1) of the German
Commercial Code (HGB).

Effect from adjustment of early retirement and partial retirement plans

-

-

-34

-

-

-

-

-

-34

-

-34

Balance at January 1, 2012
after adjustments2

3,060

11,895

20,332

997

71

-651

-28

-

35,676

1,582

37,258

Net profit

-

-

6,428

-

-

-

-

-

6,428

402

6,830

Other comprehensive income/loss before taxes

-

-

-4,008

-481

163

988

56

-

-3,282

-155

-3,437

Deferred taxes on other comprehensive income

-

-

1,611

-

-

-287

-29

-

1,295

40

1,335

Total comprehensive income/loss

-

-

4,031

-481

163

701

27

-

4,441

287

4,728

Dividends

-

-

-2,346

-

-

-

-

-

-2,346

-387

-2,733

Share-based payment

-

1

-

-

-

-

-

-

1

-

1

Capital increase/Issue of new shares

3

33

-

-

-

-

-

-

36

33

69

Acquisition of treasury shares

-

-

-

-

-

-

-

-25

-25

-

-25

Issue and disposal of treasury shares

-

-

-

-

-

-

-

25

25

-

25

Changes in ownership interests in subsidiaries

-

102

-

-

-

-

-

-

102

-178

-76

Other

-

-5

-

-

-

-

-

-

-5

88

83

Balance at December 31, 2012

3,063

12,026

22,017

516

234

50

-1

-

37,905

1,425

39,330

Balance at January 1, 2013
before adjustments

3,063

12,026

27,977

530

234

50

-1

-

43,879

1,631

45,510

Effects from first-time adoption of IAS 19R

-

-

-5,919

-14

-

-

-

-

-5,933

-206

-6,139

Effect from adjustment of early retirement and partial retirement plans

-

-

-41

-

-

-

-

-

-41

-

-41

Balance at January 1, 2013
after adjustments2

3,063

12,026

22,017

516

234

50

-1

-

37,905

1,425

39,330

Net profit

-

-

6,842

-

-

-

-

-

6,842

1,878

8,720

Other comprehensive income/loss before taxes

-

-

1,490

-1,485

33

1,141

32

-

1,211

-6

1,205

Deferred taxes on other comprehensive income

-

-

-372

-

-6

-338

-43

-

-759

-13

-772

Total comprehensive income/loss

-

-

7,960

-1,485

27

803

-11

-

7,294

1,859

9,153

Dividends

-

-

-2,349

-

-

-

-

-

-2,349

-269

-2,618

Share-based payment

-

2

-

-

-

-

-

-

2

-

2

Capital increase/Issue of new shares

6

72

-

-

-

-

-

-

78

7

85

Acquisition of treasury shares

-

-

-

-

-

-

-

-24

-24

-

-24

Issue and disposal of treasury shares

-

-

-

-

-

-

-

24

24

-

24

Changes in ownership interests in subsidiaries

-

-23

-

-

-

-

-

-

-23

-2,433

-2,456

Other

-

-227

-

-

-

-

-

-

-227

94

-133

Balance at December 31, 2013

3,069

11,850

27,628

-969

261

853

-12

-

42,680

683

43,363

1 For other information on changes in equity, see Note 20.2 Information on adjustments to the prior-year figures is disclosed in Note 1.3 Retained earnings also include items that will not be reclassified to profit or loss. Actuarial losses from pensions and similar obligations amount to €4,983 million net of tax in 2013 (2012: €6,139 million net of tax).

The accompanying notes are an integral part of these consolidated financial statements.